Jos. A. Bank Wants to Buy Men’s Wearhouse for $2.3B

[1]Shares of The Men’s Wearhouse (MW[2]) soared almost 25% in Wednesday morning trading after a buyout bid from a men’s apparel rival was made public[3].

Jos. A. Bank (JOSB[4]) has offered to pay $48 a share for Men’s Wearhouse, valuing the all cash deal at $2.3 billion. The offer was originally submitted to Men’s Wearhouse management in private back in September. Jos. A. Bank is offering a 42% premium over Men’s Wearhouse’s share price at the time the bid was first made, the Associated Press notes.

On Wednesday, Men’s Wearhouse shot down the buyout bid[5], which it dismissed as “highly opportunistic.” Men’s Wearhouse said the offer undervalued the company and was likely to raise anti-trust concerns from regulators, the New York Times noted.

Men’s Wearhouse experienced a management shuffle over the summer after its George Zimmer, its founder and chairman, was ousted by its board after he disagreed with its board about the company’s business strategy[6].

In August, reports surfaced that Zimmer was looking to buy the company[7], though Men’s Wearhouse was said to be disinclined toward a sale.

The company operates 1,200 stores under its Men’s Wearhouse, K&G and Moore’s brands.